Green power may mean new life for Niles dam

Demand could boost facility's value.

Demand could boost facility's value.

November 16, 2008|By LOU MUMFORD Tribune Staff Writer

NILES -- Unused for more than a decade, the Niles city dam on the Dowagiac River would likely be forgotten if not for fish, fishermen and the occasional flood like the one in September. But it may turn out residents downstream aren't the only ones pleased the dam has remained intact. City officials have confirmed the city is looking to hire a consultant to determine the feasibility of putting the dam back into operation. The consulting firm may look at the possibility also of harnessing the St. Joseph River to produce electricity in Niles, city Administrator Terry Eull said. Why now? Eull said renewable energy sources are popular and will become more so under a new Michigan law that will require power-producing entities, either public or private, to feature green power in 10 percent of their electrical generation by 2015. The Niles utility is exempt because, instead of producing its own electricity, it buys it from American Electric Power. But AEP is required to comply with the legislation, Eull said, adding the upshot is green power could become such a hot commodity it might be well worth the investment to once again harness the dam for electricity. "If we can do that and save electricity users in Niles some money, that's what we should do," Eull said. Electricity produced in Niles wouldn't necessarily be used by the city's utility customers but could be sold on the open market, he said. Those revenues, in turn, would help offset the electricity costs for city customers. Instead of the power generation equipment used at the dam when it provided the city with a little less than 2 percent of its electricity, Eull said new technology would likely be applied. "It would probably be something (equipment) in the water," he said. William Gallagher, a veteran member of the Niles Utilities Board and an advocate of hydroelectric generation, said such low-velocity turbines currently are producing power on the Ohio and Mississippi rivers. In-water turbines are relatively small, don't require powerhouses and don't necessarily require even dams, he said. "But if you have a dam, it helps," he said. "To make them turn, you have to have water flowing." Niles Utilities Department Manager James Lehmkuhl said Niles is allowed under its contract with AEP to produce up to 10 percent of its own electricity. A potential problem, however, is that once it begins producing that power, it's obligated to do so all the time. Another aspect of the new state law mandating the use of green power is that municipalities that sell electricity like Niles will be required to develop programs that will result in residents cutting back on energy consumption by 10 percent by 2015. Lehmkuhl and Eull said the program hasn't been defined yet but it could involve energy audits and methods of encouraging residents to switch over to more energy-efficient appliances and light bulbs. Eull said Niles would be allowed to collect up to $3 per utility customer to cover the cost of the program. While that aspect won't be popular, neither will the inevitable rise in electric bills. "Some estimates say electricity rates in this country will double in the next 10 to 15 years," Eull said. "The reality is, we've got to do something." Staff writer Lou Mumford: lmumford@sbtinfo.com (269) 687-7002